How big a payoff can enterprises expect from consolidating servers and data centers? HP executives speaking at Interop, detailed the company's experience consolidating down from 80 data centers.

LAS VEGAS -- HP's networking portfolio is now complete enough that it can power the computer giant's own network. This, according to HP's CIO Randy Mott, who spoke this week at the Interop conference here.

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Mott joined Marius Haas, senior vice president and general manager at HP Networking, who detailed how HP (NYSE:HPQ) is integrating the technology assets it recently gained with its $2.7 billion acquisition of 3Com.

"The network needs to transform and it needs to be the glue that brings things together," Haas said. "People want server-like economics within the networking environment and guess what? There is no reason why that's not possible."

Haas noted the solution to improving data center economics is integrating server, storage and networking wrapped together with management. As a proof point for HP Networking's vision, Mott came on stage to detail how HP is using its own gear for data center consolidation.

Mott said HP's network was a victim of IT sprawl with over 85 data centers in 29 countries. But as part of the company's network consolidation, HP had to do a total network redesign to an open network architecture. Mott said that HP has now consolidated down to six next generation data centers (NGDC) with solid results.

Since consolidating data centers Mott said that HP has reduced the number of servers by 40 percent while at the same time delivering a 250 percent increase in processing power. Overall HP has reduced its data center costs by 60 percent.

One of HP's new NGDCs is its Houston West data center which was completed in March of this year. Mott said that the facility is currently at 25,000 square feet and uses 34 3Com core routing devices, 300 HP Procurve switches and 4 Tipping Point IPS units.

"Today all of our requirements can be met with HP networking solutions," Mott said.

Mott urged Interop attendees to think about their own IT consolidation efforts as a mechanism to drive improved return on investment for IT operations.

Haas added that the transformation and consolidation of HP's network is a critical component of HP delivering results as an organization. He noted that Mott's team had some skeptics in the beginning but once they looked at all the available technology they determined that it was the right decision and the right way to go for HP.